Lindsay’s Q1 Earnings and Revenue to Jump 30%

Lindsay Corporation, a manufacturer of Zimmatic brand center pivot irrigation systems, is expected to report its fiscal first-quarter earnings of $0.79 per share, which represents year-over-year growth of over 60%, up from $0.49 per share seen in the same period a year ago.

The Omaha Nebraska-based company that also manufactures farm and construction machinery, as well as road and railroad infrastructure equipment would post revenue growth of nearly 30% to $140.412 million from $108.49 million a year ago. The company has been able to beat earnings per share (EPS) estimates most of the time in the last two years.

The company is scheduled to report results for the quarter ended on Nov 30, 2021 on Thursday, Jan 6, before the bell. The better-than-expected number would help the stock recoup recent losses. Lindsay’s shares rose over 18% in 2021. At the time of writing, the stock was trading 0.35% higher at $153.78 on Tuesday.

Analyst Comments

“Lindsay’s earnings estimates for the first-quarter fiscal 2022 have been stable of late. Lower Road Zipper System sales have been weighing on its infrastructure segment’s sales. This has been offsetting the improvement in irrigation sales, both in domestic and international markets. Lindsay has been grappling with higher raw material costs (steel, zinc) and freight costs. The company continues to face a number of supply chain challenges, including increased lead times and availability of certain components, labor and logistics constraints,” noted equity analyst at ZACKS Research.

“This will continue to hurt margins in the near term until the situation stabilizes. Timing of certain projects implementation and road construction activity has been impacted by coronavirus-related delays. Further, Omicron variant of COVID-19 remains a concern as it could impact commodity prices again.”

Lindsay Stock Price Forecast

Two analysts who offered stock ratings for Lindsay in the last three months forecast the average price in 12 months of 184.00, with a high estimate of 190.00 and a low estimate of 178.00. The average price target represents a 17.65% change from the last price of $156.39.

The current consensus among five polled investment analysts is to hold stock in Lindsay Corp. This rating has held steady since October, when it was downgraded from a buy rating, according to CNN Business. In October, Stifel raised the company’s rating to buy from hold and slashed the target price to $178 from $181.

Technical analysis also suggests it is good to sell as 100-Day Moving Average and 100-200-day MACD Oscillator signals a selling opportunity.

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